The nation’s trade deficit narrowed 9% in March to a four-month low of $64.2 billion, but shrinking imports point to weaker consumer spending and more stress on the U.S. economy.
The trade gap declined from $70.6 billion in February.
Key details: Imports fell slightly to a three-month low of $320.4 billion. They are also well off a record high of $350 billion set just one year ago.
The U.S. imported fewer computer chips and earth-moving machines. A lower cost of oil also reduced the amount of money spent on petroleum-related goods.
Exports rose 2.1% to $256.2 billion. The U.S. exported more oil and autos.
Big picture: The recent weakness in imports reflects a shift in consumer spending toward services and away from goods. Americans have also cut back on overall spending as the economy slows and talk of recession grows.
Exports have held up better, helped in part by a decline in the value of the dollar. That makes U.S. goods cheaper to buy for foreign customers.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Thursday trades.
